Wouldn’t we all like to be able to achieve instantaneous results in life? Every day, either on the radio or TV, I’m assured that I can lose 30 pounds in 4 weeks if I order the magical fat-burning tonic. I don’t even have to quit the pizza or ice cream!
Unfortunately, this isn’t much of a reality, at least for keeping the pounds off long-term. The truth is, our physical health typically takes time to improve. And, while I am a huge supporter of pizza and ice cream, I think my long-term health could benefit from fewer servings… And, I’m sure my wife would be the first to agree with that statement.
Our financial strength can see the same improvements by removing the “junk” and finding healthier habits. If you consider lowering your discretionary spending habits and creating a stricter budget, you just might be able to strengthen your financial health for the long term. Successful investors know that it will take discipline to achieve these goals. But, a few good places to start could be paying your monthly bills on time, saving and investing regularly, and keeping track of where your money goes each month. Perseverance is crucial to your financial success, which means, tenacity when you face challenges or missteps (which we all do from time to time).
During these challenging times, you might be able to take a little bit of advice from Warren Buffet. In his annual letter to Berkshire Hathaway shareholders, he recounts stories of when he’s made mistakes and learned from them. While we will face significant hardships, perseverance is often the deciding factor of whether that temporary hardship results in a long-term success or setback.
Your dedication to your financial health will help give your plans and strategies the proper time to work. If you planted a young oak tree in your backyard, you’d need to water, fertilize, and prune it over several years before it became a beautiful tree full of memories. Financial plans and investment strategies take both time and life/business cycles to grow and bear fruit. Changing your investment strategies based on today’s “hot tip” (aka magical fat-burning tonic) is often a fast train to losing money. I firmly believe that having a long-term view will ease your stress and improve your overall situation.
I hope you are well,